Correlation Between Fidelity Advisor and Old Westbury
Can any of the company-specific risk be diversified away by investing in both Fidelity Advisor and Old Westbury at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Fidelity Advisor and Old Westbury into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Fidelity Advisor Gold and Old Westbury California, you can compare the effects of market volatilities on Fidelity Advisor and Old Westbury and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Fidelity Advisor with a short position of Old Westbury. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fidelity Advisor and Old Westbury.
Diversification Opportunities for Fidelity Advisor and Old Westbury
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Fidelity and Old is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding Fidelity Advisor Gold and Old Westbury California in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Old Westbury California and Fidelity Advisor is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Fidelity Advisor Gold are associated (or correlated) with Old Westbury. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Old Westbury California has no effect on the direction of Fidelity Advisor i.e., Fidelity Advisor and Old Westbury go up and down completely randomly.
Pair Corralation between Fidelity Advisor and Old Westbury
Assuming the 90 days horizon Fidelity Advisor Gold is expected to generate 27.15 times more return on investment than Old Westbury. However, Fidelity Advisor is 27.15 times more volatile than Old Westbury California. It trades about 0.16 of its potential returns per unit of risk. Old Westbury California is currently generating about 0.31 per unit of risk. If you would invest 4,390 in Fidelity Advisor Gold on August 28, 2025 and sell it today you would earn a total of 1,268 from holding Fidelity Advisor Gold or generate 28.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fidelity Advisor Gold vs. Old Westbury California
Performance |
| Timeline |
| Fidelity Advisor Gold |
| Old Westbury California |
Fidelity Advisor and Old Westbury Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fidelity Advisor and Old Westbury
The main advantage of trading using opposite Fidelity Advisor and Old Westbury positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fidelity Advisor position performs unexpectedly, Old Westbury can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Old Westbury will offset losses from the drop in Old Westbury's long position.| Fidelity Advisor vs. Fidelity Freedom 2015 | Fidelity Advisor vs. Fidelity Puritan Fund | Fidelity Advisor vs. Fidelity Puritan Fund | Fidelity Advisor vs. Fidelity Pennsylvania Municipal |
| Old Westbury vs. Calvert Bond Portfolio | Old Westbury vs. Ishares Aggregate Bond | Old Westbury vs. Dreyfusstandish Global Fixed | Old Westbury vs. Flexible Bond Portfolio |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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